Delta Galil buys fashion brands from V.F. for $120m

Isaac Dabah  photo: Ronen Topelberg PR

The acquisition includes the businesses and brands of 7 For All Mankind, Splendid, and Ella Moss.

Delta Galil Industries Ltd. (Pink Sheet: DELTY; TASE: DELT) is buying contemporary premium brands, including the businesses and brands of 7 For All Mankind, Splendid and Ella Moss, from VF Corporation (VFC) for $120 million.

“This transaction reflects our strategic efforts to grow Delta Galil’s branded business and expand our global footprint,” said Isaac Dabah, CEO of Delta Galil. “We are thrilled to be adding three renowned premium brands to our portfolio, as they further diversify our product offering and distribution channels, while adding significant strength to our structure. We see tremendous opportunity to expand the brands’ platform for growth through continued focus on superior quality, design and innovation.”

Delta Galil says that the acquisition is projected to add over $300 million to its top line annual sales and that it is expected to be accretive to its earnings in 2017.

According to Delta Galil, 75% of the sales of the acquired brands are in the US, 21% are in Europe, and the rest in Asia.

The company intends to finance the deal using its cash and existing credit lines.

Published by Globes [online], Israel business news - www.globes-online.com - on June 30, 2016

© Copyright of Globes Publisher Itonut (1983) Ltd. 2016

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Isaac Dabah  photo: Ronen Topelberg PR
Isaac Dabah photo: Ronen Topelberg PR
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